Connect with us

News

CEB GM forwards draft agreement giving exclusive rights to Chinese company

Published

on

Supply of natural gas to power plants

By Ifham Nizam

The Ceylon Electricity Board (CEB) General Manager has forwarded a draft agreement to the Ministry of Finance recommending that exclusive rights be granted to a Chinese company for supplying natural gas (regasified LNG) to power plants at Kerawalapitiya and Kelanitissa.

The CEB invited international bids in February 2021 for the development of a floating storage and regasification unit (FSRU) at Kerawalapitiya on build, own and operate (BOO) basis on a 10-year contract.

Under this tender, the FSRU stationed offshore at Kerawalapitiya will regasify the natural gas delivered by ship in liquid form (LNG) and then deliver it to power plants at Kerawalapitiya and Kelanitissa through gas delivery pipelines to be constructed under a separate tender floated by the Ceylon Petroleum Corporation.

The CEB has engaged an Indian consulting firm using funds provided by the Asian Development Bank (ADB) to prepare the request for proposal (RFP) documents of this tender, which includes the FSRU agreement and the implementation agreement (IA).

The FSRU agreement is to be signed between the CEB and the project company that would be set up by the selected bidder. The IA is an agreement signed between the project company and the Sri Lankan government, which sets out terms on which the government will provide incentives (such as tax concessions) and assistance (for obtaining statutory approvals such as environmental permits) to the prospective project company.

Under the IA, the GOSL will guarantee the payment due to the project company from the CEB under the FSRU agreement. The IA published with the RFP in February 2021 has not offered exclusivity to bidders, as it is unnecessary to offer such a guarantee since the FSRU agreement will ensure that the project company will operate the FSRU for 10 years.

The bids were closed on 25 June 2021, and the CEB has received only two bids despite some 18 companies purchasing the bidding documents.

The CEB Engineers’ Union (CEBEU) at the time claimed that potential investors had been discouraged by the government’s decision to entertain an unsolicited proposal by the US Company New Fortress Energy (NFE) to supply LNG to two private power plants in Kerawalapitiya including the FSRU and delivery pipeline.

However, according to a senior CEB engineer, this allegation was baseless because another international tender for a combined cycle power plant at Kerawalapitiya published around the same time attracted only a single bid. Industry experts blame international developers’ lack of interest in the dire financial situation in the country that existed at the time.

Out of the two bids received, the offer submitted by a leading US firm that owns and operates a large fleet of FSRUs was rejected by the technical evaluation committee (TEC) because the bidder had sought to conduct on its own expense a complete hydrological study of the offshore location assigned for the FSRU.

Some experts, contacted by The Island agreed that such studies were required for designing the offshore mooring system of the FSRU, which is one of the most critical items in the FSRU operation.

They were of the opinion that it was not usual for FSRU developers to rely on preliminary studies conducted by a third party because mooring system design is a highly specialised job that was not entrusted to unknown parties. However, the CEB has refused the bidder’s request, citing the urgency of implementing this project as the proposed study would take approximately two months. Accordingly, the bid has been rejected without further consideration.

However, despite CEB’s claim of urgency, the TEC is yet to complete the evaluation of the single bid and award the tender, 14 months after the bids were closed. The then CEBEU President Saumya Kumarawadu told The Island in September 2021 that the CEB’s tender was based on a comprehensive feasibility study carried out by experts and the tender was in its final stage of evaluation.

He expressed confidence that the CEB would soon select a suitable investor through a transparent and competitive bidding process, to procure the LNG infrastructure to supply LNG for all existing and future power plants in the country at the most competitive prices.

The TEC has accepted the only remaining offer received from a Chinese company, which is already engaged in road construction contracts in Sri Lanka, submitted in partnership with the Pakistani supplier of the FSRU. It is understood that this “qualifying offer” had quoted a price that is nearly twice that of the offer rejected by the TEC.

Based on the prices offered in the two bids received and the total LNG throughput guaranteed by the CEB in the RFP for the FSRU operation (443 million MMBtu for the 10-year period), the Chinese offer would cost around USD 560 million more than the offer of the US company over the 10-year contract term.

Because of the substantially high price quoted by the selected bidder, it has been decided to negotiate with the bidder with a view to reducing the price. Although the government tender guidelines allow negotiating the price with the selected bidder, they do not permit amendments to original commercial conditions or technical specifications during price negotiations in BOO/BOT projects. However, it is understood that the TEC has agreed to several material changes to the bid conditions including the bidder’s demand to change the designated location of the FSRU, a request adamantly rejected by the CEB during tendering.

The CEB has turned down repeated requests from potential bidders during the pre-bid meetings to change the location of the FSRU specified in the RFP. These parties have claimed that the location specified in the RFP did not have sufficient depth of water needed to float the FSRU.

Industry experts contacted by The Island believed that the CEB’s refusal to change the location may have resulted in the CEB ending up with only two bids. In any event, changing the assigned location of the FSRU is a material deviation from the original tender conditions, especially since the CEB has been clear from the beginning that this change could not be allowed.

The amended IA forwarded by the CEB General Manger is believed to contain several other unfavourable conditions not included in the original IA published with the RFP.

One such amendment is the GOSL’s undertaking to grant exclusive rights to the Chinese company for FSRU operation and delivery of gas to power plants for 10 years. Such a condition will effectively give this company full control of gas supply to nearly 2000 MW of generation capacity in the country, regardless of who supplies LNG.

Ironically, the strong opposition by the CEBEU to the proposal by the US company NFE was based on the allegation that NFE would be given a five-year monopoly for LNG supply in the country under that proposal.

It is also understood that the amended IA has added a new section that will effectively prevent the proposed restructuring of the CEB. Some question whether this is a clever ploy by the CEB engineers, who are opposed to the government’s restructuring of the CEB, to force the GOSL to abandon its reform process.

It is also understood that the amended IA has shifted the burden of obtaining numerous governmental and statutory approvals to the GOSL and CEB. Obtaining such approval is the Project Company’s obligation and the government generally agrees in the IA to provide reasonable assistance.

A senior CEB official contacted by The Island agreed that changing mandatory tender conditions after the award was made would be unlawful and likely to be challenged in court. He stated further that it would be most unlikely that the Ministry of Finance would agree to the changes proposed in the amended IA forwarded by the CEB, as some of these conditions may impinge on the rights of the government.



News

Delegation from Korean Volunteer Association meet Secretary to the President

Published

on

By

A special delegation led by Deokuju Jung, President of the Korean Volunteer Association for Distinguished Service to the State, met Secretary to the President Dr Nandika Sanath Kumanayake at the Presidential Secretariat on Monday (12) afternoon .

The discussions focused extensively on welfare programmes the association expects to implement in Sri Lanka and the support it hopes to obtain from the Government of Sri Lanka for these initiatives.

Attention was also given to the proposed implementation of a comprehensive programme in collaboration with the Government to support children with special needs in Sri Lanka.

The meeting was also attended by Ven. Wanawasi Rahula Thero, Founder of Namal Uyana and Chief Incumbent of the Namal Uyana Forest Monastery, Senior Additional Secretary to the President Roshan Gamage and Korean Volunteer Association representatives Jungsun Choi, Junyoon Lim, Chaeeun Kim and Wonwook Choi.

[President’s Media Division]

Continue Reading

News

HRCSL issues recommendation on seizure of four books by B. Piratheepan by Sri Lanka Customs

Published

on

By

The Human Rights Commission of Sri Lanka (HRCSL) issued its recommendation in Case No: HRC/KIL/031/26 concerning the decision of the Director General, Sri Lanka Customs to seize
four books authored by B Piratheepan.

The books ‘Ippothum Inge Irandu Thesangalthaan’, ‘Elluttal Nan Yuttam Ceykiren’, ‘Bayangaravaathi’, and ‘Cyanide’ are Tamil language books printed in Chennai, India, and were imported to Sri Lanka. Sri Lanka Customs seized the books on 27 March 2026 and had informed the Complainant that they would only be released upon obtaining approval from the Ministry of Defence.

Following an opinion issued by the Arts Council of Sri Lanka and the State Literary Sub-Panel, two of the books, ‘Bayangaravaathi’ and ‘Cyanide’ were released on the basis that the experts on the Council had concluded that these books were works of fiction. Copies of the remaining two books ‘Ippothum Inge Irandu Thesangalthaan’ (75 copies) and ‘Elluttal Nan Yuttam Ceykiren’ (147 copies) were not released and remained under detention.

At the conclusion of its inquiry, the Commission noted that none of the Respondents wished to take direct responsibility for the continued seizure of the remaining two books. It observed that
the handling of the matter was marked by indecision and opacity at every stage.

Sri Lanka Customs purported to act under section 135, read with section 12 and Schedule B of the Customs Ordinance, which authorises it to prohibit ‘Any newspaper, pamphlet, leaflet, book or picture containing matter calculated to lead to acts made punishable under section 120 of the Penal Code’.

Relying on the recent judgment of the Supreme Court in Mohamed Razik Mohamed Ramzy v. Officer-in-Charge, Criminal Investigation Department & Others SC (F.R) No. 135/2020, the Commission found that intent remains an indispensable element of section 120 of the Penal Code and that this mental element is reinforced in Schedule B to the Customs Ordinance by the inclusion of the term ‘calculated’.

The Commission accordingly observed that both causation and intent, which are necessary features of individual culpability, must be established for a person to face legal consequences in terms of section 120 of the Penal Code.

The Commission concluded that the 1st Respondent must be of the reasonable opinion that these elements of individual culpability, causation and intent, are present in a given case to justify the permanent seizure of any publication. However, the 1st Respondent had not demonstrated that he had reached such an opinion.

The Commission observed that, while the impugned content in the Complainant’s two books (e.g. allegations that the Sri Lankan military had attacked civilians, and allegations that the
Janatha Vimukthi Peramuna supported violence) may be classified as ‘shocking’, even ‘offensive’ to some, or ‘disturbing’, there is no evidence to suggest that the impugned passages
were calculated to excite disaffection against the state, promote feelings of ill-will between communities or bring about any other harmful outcome listed in section 120 of the Penal Code.

The Commission reiterated that section 120 of the Penal Code concerns expressions that are directly inciteful and have the capacity to influence large portions of the population to act in a
harmful manner. It found that the impugned passages in the two books merely contain sentences that make allegations, which may prompt reflection among some readers, and which may be dismissed by other readers. They, in the opinion of the Commission, lack the potency expected of content that was likely to ‘excite disaffection’ or ‘promote ill-will’. It found that the continued seizure of the two books, which acted as a form of prior censorship of its contents, is both unnecessary and disproportionate in terms of meeting the legislative aims found in section 120.

The Commission also noted that the contents of these two books were claimed to already be in the public domain and had previously featured in Tamil language newspapers.

Therefore, the Respondents had not demonstrated how such content had thus far contributed to disaffection or promoted feelings of ill-will between communities. In this context, the Commission was unconvinced that the limitation in question is reasonable and concluded that the 1st Respondent’s continued seizure of the two books ‘Ippothum Inge Irandu Thesangalthaan’ and ‘Elluttal Nan Yuttam Ceykiren’ authored by the Complainant violated his right to the freedom of expression including publication guaranteed by article 14(1)(a) of the Constitution.

The Commission separately found that the sequence of events, and the explanations provided by the Respondents, indicated that the language of the Complainant’s books, i.e., the Tamil
language, was pivotal to their seizure. It observed that several state institutions that encountered these books treated them with prejudice and suspicion, which would not have been afforded to books of another language. Given that the Complainant’s two books have remained in detention for a prolonged period, i.e. more than six months, with no formal procedure, the Commission found a violation of article 12(1) of the Constitution. It also found that the actions of the 1st
Respondent were discriminatory on the basis of language, and violated his right to non-discrimination on the grounds of language guaranteed by article 12(2) of the Constitution.

Commenting on the application of article 14(1)(f) of the Constitution, the Commission found that Tamil-speaking people are a linguistic minority in Sri Lanka who enjoy the protection of both article 14(1)(f). The Commission recalled that the marginalization of Tamil-speakers throughout Sri Lanka’s post-independence period has been one of the root causes of the country’s ethnic conflict. Therefore, state functionaries should be particularly sensitive to the implications of treating Tamil language publications with prejudice. The Commission recognized that the essence of the freedom to promote one’s own culture and to use one’s own language is that citizens should have autonomy over the cultural and literary content they wish to produce or consume. The state should not interfere with this freedom except in very limited circumstances governed by article 15 of the Constitution.

Accordingly, it found that the 1st Respondent, through the continued seizure of the Complainant’s two books ‘Ippothum Inge Irandu Thesangalthaan’ and ‘Elluttal Nan Yuttam Ceykiren’, violated his fundamental right to the freedom to enjoy and promote his own culture and to use his own language.

In the circumstances, the Commission recommended that the 1st Respondent forthwith release from detention all copies of the two books titled ‘Ippothum Inge Irandu Thesangalthaan’ and ‘Elluttal Nan Yuttam Ceykiren’ authored by the Complainant.

Continue Reading

News

Presidential pardons: Govt. studying Justice Thurairaja’s recommendations – Minister

Published

on

Thurairaja / Harshana

By Shamindra Ferdinando

Justice and National Integration Minister Harshana Nanayakkara said yesterday that the Cabinet was studying a set of recommendations made by a Committee, led by retired Supreme Court judge Sithambarampillai Thurairaja, PC, regarding a systematic, fair and transparent mechanism for granting presidential pardons to convicted prison inmates.

Attorney-at-law Nanayakkara said so when The Island raised the issue in the wake of the ongoing controversy over prison authorities compelling General Secretary of the Bodu Bala Sena (BBS) Ven. Galadodaaththe Gnanasara to wear civilian attire when produced in court.

The Minister declined to elaborate but said the Cabinet of Ministers was yet to reach consensus on the recommendations. The NPP government, on 25 June 2025, appointed Thurairaja’s committee to study the provisions of the Article 34(1) of the Constitution, along with other statutory acts and judicial rulings.

Justice Thurairaja handed over his report to Justice and National Integration Ministry Secretary Ayesha Jinasena, PC.

The other members of the Committee were Deputy Minister of Mass Media Dr. Kaushalya Ariyarathne, Additional Secretary to the Ministry of Justice and National Integration Piyumanthi Peiris, Additional Solicitor General Nerin Pulle, Senior Deputy Inspector General of Police (SDIG) Legal Asanga Karawita, Chairperson of the Bureau of Rehabilitation Professor Wasantha Subasinghe, Specialist Dr. Chiththahari Abayanayake, former Acting Commissioner of Prisons Nishan Dhanasinghe, Acting Commissioner General of Prisons Prasad Hemantha Kumara, Senior Assistant Secretary (Legal) to the Ministry of Justice and National Integration Roshani Hettige, and Senior Assistant Secretary to the Ministry of Justice and National Integration Chandima Welikala.

The government called for guidelines regarding presidential pardon over a year before the Supreme Court rescinded, in September this year, the presidential pardon granted by Maithripala Sirisena to Ven Gnanasara serving a six-term of rigorous imprisonment for contempt of court. That pardon was granted in May 2019, the third controversial release by Sirisena during his presidency.

President Sirisena pardoned an ex-LTTE terrorist and also the Royal Park murderer Don Shramantha Jude Anthony Jayamaha, in 2016 and 2019, respectively. The Supreme Court, in June 2024, annulled the pardon granted to Jayamaha and ordered his arrest though he still remains free having fled overseas no sooner he was granted the pardon.

Continue Reading

Trending